Data-Driven Analysis of Price Change, User Behavior and Wealth Accumulation in Bitcoin Transactions

Abstract

Bitcoin scheme powered by the blockchain technology is a global payment system that posed great challenges and opportunities for economists, entrepreneurs and consumers. As Bitcoin is still considered to be mysterious and not well understood by many stakeholders, it is essential to analyze the capabilities of Bitcoin and its underlying protocol with regard to different financial aspects. Some of these aspects include Bitcoin ownership, Bitcoin saving trends, transaction authenticity, price stability, and energy consumption. Through this paper we present a data driven analysis of price fluctuations, user behavior, and wealth accumulation in Bitcoin transaction. Of particular interest to stakeholders is the understanding of factors that impact Bitcoin price and the volatility over time. We focus on comparison of Bitcoin price trends vs number of users and the number of transactions. We also analyze the richest addresses and the percentage of wealth in these addresses. Important conclusions are finally summarized.